M&A

Baker Hughes | Energy Services | GE Oil & Gas | Guest Post | Industrywide Issues | M&A

Coming GE-Baker Hughes Merger – World’s First “Full-Stream” Co.
June 16, 2017June 16, 2017

You’ve heard of upstream, which that portion of the industry that finds and drills for natural gas and oil. You’ve heard of midstream, the pipelines and processing plants portion of the industry. And you’ve heard of downstream, which includes petrochemical plants, industrial users, and homeowners who use the stuff found and transported. But have you ever heard of “full-stream?” That would be a company that is involved, in a major way, in all three major areas of the energy business. Companies like Exxon Mobil and Shell come close, but they don’t really fit that description. They drill for oil and gas (upstream), and they have some pipelines (minimal). They do have a big presence in the downstream, with cracker plants and other petrochemical facilities. However, the first truly full-stream company is about to be born, from the merger between GE Oil & Gas and Baker Hughes. It will be a “molecule to megawatt” company. MDN friend Steven Heins, an energy and regulatory consultant and former vice president of communication for Orion Energy Systems, shares his observations about the impending merger and what it means…
Read More “Coming GE-Baker Hughes Merger – World’s First “Full-Stream” Co.”
Baker Hughes | Energy Services | GE Oil & Gas | Industrywide Issues | M&A

Trump DOJ Blesses GE Takeover of Baker Hughes, Merging Soon
June 13, 2017June 13, 2017

During the Obama reign of terror, the world’s #2 largest oilfield services company, Halliburton, tried to buy the world’s #3 largest oilfield services company, Baker Hughes. The Obama Dept. of Justice (DOJ) killed that deal (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). It was a costly mistake for Halliburton–they had to pay Baker Hughes a $3.5 billion breakup fee. Baker Hughes was on a mission to sell itself to someone, and eventually found a new suitor last October: GE Oil & Gas (see Breaking: Who Needs Halliburton? Baker Hughes Merging with GE O&G). Since then the two have worked hard to ensure there will not be a repeat of the Halliburton disaster. Earlier this month we told you that Europe has blessed the deal (see Europe Approves GE Takeover of Baker Hughes, Co Gets a New Name). Now the Trump DOJ has blessed the deal too. GE had to agree to sell its Water & Process Technologies business (called GE Water). Small price to pay. The two maintain that the merger will take place “mid-year”. Since it’s already mid-year, we expect that translates to July or August…
Read More “Trump DOJ Blesses GE Takeover of Baker Hughes, Merging Soon”
Columbia Pipeline Group | Electrical Generation | Energy Services | Industrywide Issues | M&A | TC Energy/TransCanada

TransCanada Sells 4 Northeast Powergen Assets, 1 in Marcellus
June 7, 2017June 7, 2017

Canadian-based TransCanada, famously known for wanting to build the Keystone XL oil pipeline from Canada to the Gulf Coast, didn’t want to be left out of the most important midstream story of the century (the Marcellus/Utica), so they bought Columbia Pipeline Group–closing on the sale in July 2016 (see TransCanada and Columbia Pipeline Tie the Knot Today). The original deal cost TransCanada $10 billion (U.S. dollars), and later TransCanada bought out the remaining portion of Columbia it didn’t own for another $915 million (see TransCanada Raising Big $ to Complete Buyout of Columbia Pipeline). In order to pay for everything, both the original purchase and buying out the rest of Columbia, TransCanada announced floated $3.2 billion (Canadian) in new stock, and entered an agreement to sell off their electric power assets in New England for $3.7 billion (U.S.). On Monday, TransCanada announced the closing of the deals and the transfer of their electric power assets–3 natgas-fired plants, including one located in the Marcellus region (Lebanon, PA), and one wind farm. According to their announcement, TransCanada will hit their asking price of $3.7 billion, using the money to pay off “bridge loans” involved in financing the Columbia Pipeline deal… Read More “TransCanada Sells 4 Northeast Powergen Assets, 1 in Marcellus”
Baker Hughes | Energy Services | GE Oil & Gas | Industrywide Issues | M&A

Baker Hughes, GE Release Roster of Coming Management Changes
June 6, 2017June 6, 2017

Yesterday MDN provided an update about the fast-approaching merger/buyout of Baker Hughes by GE Oil & Gas (see Europe Approves GE Takeover of Baker Hughes, Co Gets a New Name). We noted that it appears the new company, when launched, will have a new name: Bear Newco. However, would GE (and Baker Hughes) throw away the brand they’ve created over the past 100+ years in the Baker Hughes name? No, very doubtful. Which was more-or-less confirmed yesterday when Baker Hughes (and GE Oil & Gas) released the official leadership roster for the new company. We had already mentioned a few of the top names. This new list fleshes it all out–who will do what in the newly merged company, a company that will be bigger than current #2 in the world, Halliburton. The infographic (we call it a roster) of who will do what contains this name emblazoned across the top: “Baker Hughes, a GE Company.” The press release headline includes it too. So that’s what the new company name will be for branding/public purposes. Even though Bear Newco will be the company name filing paperwork with the government, the public-facing name will be Baker Hughes, a GE Company. Here’s the leadership roster for the new Baker Hughes (which doesn’t contain very much Baker Hughes)…
Read More “Baker Hughes, GE Release Roster of Coming Management Changes”
Allegheny County | Industrywide Issues | M&A | McKean County | Pennsylvania | Supply Chain

Ridgetop Energy Services Buys Keystone Wireline Inc.
June 6, 2017June 6, 2017

You know those Russian nesting dolls, which are called matryoshka dolls, where you open one and inside you see another? And you open that and inside is yet another? And on it goes four or five times. That’s how we felt when digging into this story. The news is that Ridgetop Energy Services, headquartered near Pittsburgh, has purchased Keystone Wireline Inc., located in Bradford (McKean County), PA. Who is Ridgetop and how does Keystone Wireline fit into the picture? That’s what leads us to a matryoshka doll…
Read More “Ridgetop Energy Services Buys Keystone Wireline Inc.”
Baker Hughes | Energy Services | GE Oil & Gas | Industrywide Issues | M&A

Europe Approves GE Takeover of Baker Hughes, Co Gets a New Name
June 5, 2017June 5, 2017

Last October, MDN brought you the news that Baker Hughes, the world’s third largest oilfield services company, had struck a deal to combine/merge with/sell itself to GE’s oil and gas business (see Breaking: Who Needs Halliburton? Baker Hughes Merging with GE O&G). The deal, according to the Wall Street Journal, will result in a new company that will be 65.5% owned by GE and 37.5% owned by Baker Hughes shareholders. The deal, IF it gets approved by the Dept. of Justice, will create a company with $32 billion in revenues. Make no mistake, aside from all of the “partnership” talk, this is GE buying out Baker Hughes. The CEO of the new company will be Lorenzo Simonelli, chief executive of GE Oil & Gas. The board of directors for the new company will have 5 members appointed by GE and 4 members appointed by Baker Hughes. The deal, if it happens, would catapult the new Baker Hughes, which will have the name Bear Newco, past Halliburton to become the world’s second largest oilfield services company. Get this: The deal may even catapult the new company to become the world’s number one oilfield services company–eclipsing Schlumberger! As we said at the time: The question now is, will the Dept. of Justice approve the deal? Last year the Obama DOJ killed the proposed Baker Hughes merger with Halliburton (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). Perhaps in an early sign that the DOJ will approve this merger, the European Commission has given its blessing on the deal…
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Hydraulic Fracturing | Industrywide Issues | M&A

Helmerich & Payne Buys MOTIVE Drilling Technologies for $100M
May 24, 2017May 24, 2017

Helmerich & Payne is the largest drilling rig contractor in the U.S. Their rigs can be found all over the world. In the U.S., H&P may H&P rigs are located in Texas, in the Permian basin, drilling for oil. Although a fair number are also in North Dakota and Colorado. If you look at H&P’s rig locations from last July (the most recent stats they publish, on their website), you’ll find 13 active H&P rigs in the Pennsylvania–in the Marcellus Shale. A year later, we are assuming (based on recent data) that those numbers have gone up everywhere, including the Marcellus. Even if H&P’s rig count is still just 13 in the PA Marcellus, that represents 38% of the active rigs in the Marcellus as of April (see Baker Hughes April Rig Count – M-U Highest in 12 Months). In other words, what happens with H&P in a larger sense, matters to us here in the Marcellus. Which is why it caught our attention that H&P has just announced an agreement to buy MOTIVE Drilling Technologies for $100 million. MOTIVE provides technologies that help drillers drill better. H&P specifically bought MOTIVE to make their directional drilling better–using MOTIVE’s software, i.e. algorithm-driven “cognitive computing” platform. H&P says MOTIVE’s technology will mean smoother wellbores, more accurate well placement, lower costs and higher production… Read More “Helmerich & Payne Buys MOTIVE Drilling Technologies for $100M”
Industrywide Issues | M&A | Pipelines | Research

Moody’s: Canadian Companies Still in Hunt for More US Pipelines
May 23, 2017May 23, 2017

Last year Canadian companies went on a midstream (pipeline) buying spree, snapping up major U.S. companies. In March 2016, MDN reported that Canadian midstream giant TransCanada, lusting for a bigger piece of the Marcellus/Utica pipeline pie, decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). That deal closed in July (see TransCanada and Columbia Pipeline Tie the Knot Today). Then in September, MDN reported Canadian pipeline operator Enbridge Inc. announced an all-stock deal to buy out pipeline operator Spectra Energy, based in Houston, for $28 billion (see Canadian Enbridge Buying US Spectra Energy for $28B). Spectra has a number of critical pipeline infrastructure projects under way or planned in the Marcellus/Utica region, including the planned Access Northeast pipeline to New England, the mighty NEXUS pipeline planned to span Ohio, the currently under construction Algonquin Incremental Marketing (AIM) pipeline project, and three projects (Access South, Adair Southwest and Lebanon Express) under way to expand one of the largest natural gas pipelines in the U.S. (and in the northeast)–the Texas Eastern Transmission (Tetco) pipeline. The merger was completed in February (see Spectra Energy is No More – $28B Merger with Enbridge Complete). According to a new report by Moody’s Investors Service, last year Canadian companies spent $89 billion to snap up utility and pipeline companies across the U.S. The report’s authors say they “anticipate more” such purchases this year… Read More “Moody’s: Canadian Companies Still in Hunt for More US Pipelines”
Energy Services | Industrywide Issues | Keane Group | M&A

Fracker Keane Group Continues Expansion, Buys RockPile Energy
May 23, 2017May 23, 2017

Keane Group is a Texas-based oilfield services company that provides fracking, wireline and top-hole air drilling services to oil and gas companies in the Marcellus/Utica as well as several other major basins. In January 2016, Keane announced they were buying out Canadian-based Trican Well Service for $247 million (see Oilfield Serv. Co. Keane Group Buys Trican Well Service for $247M). The expansion tripled Keane’s fracking capacity and gave it access to proprietary new technology. The buyout, and Keane’s hard work, bore fruit. Last December the privately-held company announced it will go public with an initial public offering (IPO) of stock, hoping to raise $287.5 million with the IPO (see Oilfield Services Co. Keane Group Floats $288M IPO). Keane is expanding again. Last week the company announced it’s buying out fracker RockPile Energy Services for $284.5 million. The newly expanded Keane will then take it’s place as one of the “top four or five” fracking companies in the United States… Read More “Fracker Keane Group Continues Expansion, Buys RockPile Energy”
CONE Midstream | Energy Companies | Energy Services | Industrywide Issues | M&A | Noble Energy | Pipelines

Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream
May 19, 2017May 19, 2017

Noble Energy dropped a bombshell that it has sold its 100% interest in 385,000 Marcellus/Utica acres and wells producing 415 million cubic feet equivalent of natural gas in West Virginia and Pennsylvania for $1.225 billion to “an undisclosed buyer” (see Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?). MDN exclusively shared the news of exactly the who the “undisclosed buyer” is: HG Energy (headquartered in Parkersburg, WV), backed with money from investment firm Quantum Energy Partners. HG is a “portfolio company” of Quantum. The press release announcing the acreage/asset sale went to great lengths to stress that Noble’s half operating interest in the CONE Midstream pipeline gathering system was not part of the deal. CONE is a 50/50 joint venture between CONSOL Energy (the “CO” part of the name), and Nobel Energy (the “NE” part of the name). CONE was Noble’s final connection to our region. No more. Yesterday, Noble Energy announced they’ve sold their 50% stake in CONE to Quantum Energy Partners for $765 million. This time Noble went ahead and announced the buyer, perhaps figuring MDN would find out and blab it any ;-). Here’s the announcement that Noble Energy has left the Marcellus/Utica building…
Read More “Noble/CONSOL Breakup Continues: Noble Sells 50% of CONE Midstream”
Energy Companies | Industrywide Issues | M&A | Pennsylvania | Warren Resources | Wyoming County (PA)

Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA
May 17, 2017May 17, 2017

One year ago, Banpu Pcl, Thailand’s largest coal producer, invested $112 million to purchase Range Resources’ Marcellus non-operated JV operations in Bradford County, PA (see Thai Company Buys Out Range Resources’ JV in NEPA for $112M). The “Chaffee Corners Joint Exploration Agreement” gave Banpu an ownership share in 62 producing wells and another 14 wells waiting on completion, and a share in 170+ more drilling locations. Talisman is the operator of the wells and the company that does the drilling (Banpu is just an investor). Banpu liked it so much, they did it again in January of this year (see Thai Company Banpu Makes 2nd Investment in Northeast Marcellus). The January deal gave Banpu a 10.24% stake in 10,000 acres of Marcellus leases, once again in northeastern PA, for $63 million. Chief Oil & Gas is the driller on the acreage in the second deal. Then in March, Banpu signed an agreement to invest $16 million into a venture with Tug Hill Marcellus (see Thai Company Banpu Invests Another $16M in PA Marcellus Wells). It seems that Banpu can’t get enough of the Marcellus in northeastern PA. The company just announced a fourth deal to invest in more NEPA acreage and wells. How many wells? What county is the new deal located in? And which driller is the operator of that acreage? We give you the details you won’t find elsewhere…
Read More “Thai Company Banpu Invests in Another 34 Marcellus Wells in NEPA”
Atlas Energy | Energy Companies | Industrywide Issues | M&A | New York | Ohio | Pennsylvania | Statewide NY | Statewide OH | Statewide PA | Statewide WV | West Virginia

Titan Energy Sells Marcellus Assets, Buyer Rapidly Expanding
May 8, 2017

In February, MDN told you that Titan Energy, which used to be known as Atlas Energy/Resource Partners, was listing what appeared to be the rest of the acreage they still own on the Appalachian basin–some 494,229 acres–including rights for drilling in the Marcellus (see Titan Energy Puts 494K Appalachian Acres Up for Sale). On Friday, Titan announced it has signed an agreement to sell the acreage, along with 8,400 oil and gas wells across Pennsylvania, Ohio, Tennessee, New York and West Virginia, for $84.2 million to Diversified Gas & Oil (DGO). Yes, the vast majority of those wells are conventional (vertical only) and not shale wells. In fact, we’re not sure any of the wells are shale wells. However, Marcellus assets were part of the sale–so at least some of the acreage will allow for Marcellus drilling, should DGO want to pursue it. Although Titan is keeping its Utica Shale acreage, the company says it use the money from this sale to concentrate efforts on oil drilling in the Texas Eagle Ford Shale play. Titan is moving its headquarters from Pittsburgh to Houston, TX. In addition to the news about Titan selling its conventional assets and moving, the twin story (perhaps even more interesting) is that the buyer, DGO (nominally headquartered in Birmingham, Alabama, although actually a UK company), has been on a buying spree–snapping up 75,250 conventional acres (1,300 wells) in PA & WV earlier this year. All told, DGO now owns 1.6 million acres of leases and 10,000+ conventional oil and gas wells in Appalachia…
Read More “Titan Energy Sells Marcellus Assets, Buyer Rapidly Expanding”
Energy Companies | HG Energy | Industrywide Issues | M&A | Noble Energy | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?
May 3, 2017May 3, 2017

Yesterday Noble Energy dropped a bombshell that it has sold its 100% interest in 385,000 Marcellus/Utica acres and wells producing 415 million cubic feet equivalent of natural gas in West Virginia and Pennsylvania for $1.225 billion to “an undisclosed buyer.” That works out to be $3,181 per acre. Not included in the sale is Noble’s half operating interest in the CONE Midstream pipeline gathering system. It was just three years ago that Noble announced it would lease 138,000 feet in a new office building in Southpointe, and move in 200 employees (see Noble Energy’s Huge Vote of Confidence in the Marcellus). At the time, Noble’s CEO said the Marcellus is “the premiere gas play in the United States” and that the Marcellus figures prominently in Noble’s future plans. That was then, this is now. Noble will use the money from the sale to pay down essentially all of the debt the company incurred from its recent $2.7 billion purchase of Clayton Williams Energy–a deal that expanded Noble’s “core Delaware Basin position” (i.e. the Permian Shale in Texas, an oil play). All of the above is what you get from other news sources. The reason you read MDN is because we’ve found out who the buyer of the Noble acreage is…
Read More “Noble Energy Sells Remaining M-U Assets for $1.2B – Who Bought?”
Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Sunoco Logistics

Sunoco Logistics Partners Ceases to Exist as of Today
April 28, 2017April 28, 2017

As of today, the nameplate on the door that says “Sunoco Logistics Partners” is getting changed to “Energy Transfer Partners” (ETP). On paper (and for investors) Sunoco LP & ETP have been different companies, but functionally both companies have co-existed under the Energy Transfer Equity (ETE) umbrella for years–essentially as different divisions of the same company. Sunoco LP is (currently) best known for its Mariner East pipeline projects–along with the Marcus Hook refinery/terminal. ETP is (currently) best known for the recently completed Dakota Access Pipeline. Sunoco LP’s headquarters will move from Newtown Square, PA to combine with ETP’s HQ in Dallas, TX. For investors, Sunoco LP will stop trading at close of business today and become part of the ETP ticker symbol as of Monday. Shareholders for both companies approved the paper merger on Wednesday…
Read More “Sunoco Logistics Partners Ceases to Exist as of Today”
Energy Companies | EQT Corp | Industrywide Issues | M&A | Trans Energy

Keeping Trans Energy’s Bacon Out of Fire Earned Law Firm an Award
April 24, 2017April 24, 2017

Last October EQT announced a deal to buy Trans Energy, Inc., a public pure-play driller in the Marcellus in West Virginia, which will become a wholly-owned subsidiary of EQT (see EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M). EQT also bought Trans Energy joint venture partner Republic Energy’s share in their Marcellus jv. The land is located in Marion, Wetzel and Marshall counties (in WV). When the deal closed, investment bank Gordian Group strutted around making some big boasts about their role in the deal. Gordian, via a press release, took credit for keeping Trans Energy out of bankruptcy court and for soaking EQT on the purchase price (see EQT Closes on Trans Energy Deal; Investment Bank Makes Big Boasts). It seems Gordian isn’t the only one strutting about the the EQT/Trans Energy deal. International corporate law firm Haynes and Boone, with a big energy practice in Texas, also assisted with the deal. In fact, in a Haynes and Boone press release, they boast that keeping Trans Energy solvent long enough to sell out to EQT earned the law firm the 2016 “Out-of-Court Restructuring Deal of the Year” award by The M&A Advisor…
Read More “Keeping Trans Energy’s Bacon Out of Fire Earned Law Firm an Award”
Industrywide Issues | M&A

PwC Report: Oil & Gas M&A in 1Q17 Saw “Stunning” 160% Increase
April 24, 2017April 24, 2017

According to one of the top accounting/consulting firms in the world, PricewaterhouseCoopers (PwC), mergers & acquisitions (M&A) activity in the oil and gas sector in the U.S. set a new record high in 1Q17 for the first quarter of any year–$73.04 billion in deals. The report, titled “US Oil & Gas Deals insights first quarter 2017” (full copy below), says the market is quite pleased with The Donald’s pro-energy policies and is loosening up the money to fund new exploration and production. In fact, first quarter spending represents a “stunning 160% increase in deal value year over year.” Some 53 deals were announced in 1Q17, with upstream (i.e. exploration/drilling) taking the lion’s share with 32 deals worth $36.6 billion…
Read More “PwC Report: Oil & Gas M&A in 1Q17 Saw “Stunning” 160% Increase”